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Wait time - probability

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Waiting Time

1) Let τ be a random variable which measures the time one has to wait for an event, such as default of a bond. As one can observe, the distribution of τ has the following
density function:

f(t) = ( λ > 0 is given )

a) Given any time t > 0, find the probability that one has to wait longer than t.

b) Find the cumulated density function Fτ for τ. ( Find the framework)


Solution Summary

This is a set of problems that relate to wait time and probability.